DRAFT LEGISLATION - New Foundation Allowance

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A bill to amend 1979 PA 94.

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DRAFT 1 07/16/2015
CONFIDENTIAL
ADVISORY AND PRELIMINARY TO A FINAL DETERMINATION
(State School Aid for Education District-NewCo)

DRAFT BILL No. ____

DRAFT BILL No. _____
________ ____, 2015, Introduced by Rep./Sen. _______________ and referred to the Committee on
__________________________________.
A bill to amend 1979 PA 94, entitled
"The State School Aid Act of 1979,"
by amending sections 6, 20, and 31a (MCL 388.1606, 388.1620, and
388.1631a), sections 6 and 20 as amended by 2014 PA 196, section
31a as amended by 2014 PA 476, and by adding section 82.

DRAFT BILL No. ____

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
1

Sec. 6. (1) "Center program" means a program operated by a

2

district or by an intermediate district for special education

3

pupils from several districts in programs for pupils with autism

4

spectrum disorder, pupils with severe cognitive impairment, pupils

5

with moderate cognitive impairment, pupils with severe multiple

6

impairments, pupils with hearing impairment, pupils with visual

7

impairment, and pupils with physical impairment or other health

8

impairment. Programs for pupils with emotional impairment housed in

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2

1

buildings that do not serve regular education pupils also qualify.

2

Unless otherwise approved by the department, a center program

3

either shall serve all constituent districts within an intermediate

4

district or shall serve several districts with less than 50% of the

5

pupils residing in the operating district. In addition, special

6

education center program pupils placed part-time in noncenter

7

programs to comply with the least restrictive environment

8

provisions of section 612 of part B of the individuals with

9

disabilities education act, 20 USC 1412, may be considered center

10

program pupils for pupil accounting purposes for the time scheduled

11

in either a center program or a noncenter program.

12

(2) "District and high school graduation rate" means the

13

annual completion and pupil dropout rate that is calculated by the

14

center pursuant to nationally recognized standards.

15

(3) "District and high school graduation report" means a

16

report of the number of pupils, excluding adult participants, in

17

the district for the immediately preceding school year, adjusted

18

for those pupils who have transferred into or out of the district

19

or high school, who leave high school with a diploma or other

20

credential of equal status.

21
22
23

(4) "EDUCATION DISTRICT" MEANS A SCHOOL DISTRICT ORGANIZED
UNDER PART 2A OF THE REVISED SCHOOL CODE, MCL 380.101 TO 110.
(5)(4) "Membership", except as otherwise provided in this

24

article, means for a district, a public school academy, the

25

education achievement system, or an intermediate district the sum

26

of the product of .90 times the number of full-time equated pupils

27

in grades K to 12 actually enrolled and in regular daily attendance

28

on the pupil membership count day for the current school year, plus

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3

1

the product of .10 times the final audited count from the

2

supplemental count day for the current school year. A district's,

3

public school academy's, or intermediate district's membership

4

shall be adjusted as provided under section 25e for pupils who

5

enroll in the district, public school academy, or intermediate

6

district after the pupil membership count day. All pupil counts

7

used in this subsection are as determined by the department and

8

calculated by adding the number of pupils registered for attendance

9

plus pupils received by transfer and minus pupils lost as defined

10

by rules promulgated by the superintendent, and as corrected by a

11

subsequent department audit. For the purposes of this section and

12

section 6a, for a school of excellence that is a cyber school, as

13

defined in section 551 of the revised school code, MCL 380.551, and

14

is in compliance with section 553a of the revised school code, MCL

15

380.553a, a pupil's participation in the cyber school's educational

16

program is considered regular daily attendance; for the education

17

achievement system, a pupil's participation in an online

18

educational program of the education achievement system or of an

19

achievement school is considered regular daily attendance; and for

20

a district a pupil's participation in an online course as defined

21

in section 21f is considered regular daily attendance. The amount

22

of the foundation allowance for a pupil in membership is determined

23

under section 20. In making the calculation of membership, all of

24

the following, as applicable, apply to determining the membership

25

of a district, a public school academy, the education achievement

26

system, or an intermediate district:

27

(a) Except as otherwise provided in this subsection, and

28

pursuant to subsection (6), a pupil shall be counted in membership

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4

1

in the pupil's educating district or districts. An individual pupil

2

shall not be counted for more than a total of 1.0 full-time equated

3

membership.

4

(b) If a pupil is educated in a district other than the

5

pupil's district of residence, if the pupil is not being educated

6

as part of a cooperative education program, if the pupil's district

7

of residence does not give the educating district its approval to

8

count the pupil in membership in the educating district, and if the

9

pupil is not covered by an exception specified in subsection (6) to

10

the requirement that the educating district must have the approval

11

of the pupil's district of residence to count the pupil in

12

membership, the pupil shall not be counted in membership in any

13

district.

14

(c) A special education pupil educated by the intermediate

15

district shall be counted in membership in the intermediate

16

district.

17

(d) A pupil placed by a court or state agency in an on-grounds

18

program of a juvenile detention facility, a child caring

19

institution, or a mental health institution, or a pupil funded

20

under section 53a, shall be counted in membership in the district

21

or intermediate district approved by the department to operate the

22

program.

23

(e) A pupil enrolled in the Michigan schools for the deaf and

24

blind shall be counted in membership in the pupil's intermediate

25

district of residence.

26

(f) A pupil enrolled in a career and technical education

27

program supported by a millage levied over an area larger than a

28

single district or in an area vocational-technical education

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1

program established pursuant to section 690 of the revised school

2

code, MCL 380.690, shall be counted only in the pupil's district of

3

residence.

4
5
6
7
8
9
10

(g) A pupil enrolled in a public school academy shall be
counted in membership in the public school academy.
(h) A pupil enrolled in an achievement school shall be counted
in membership in the education achievement system.
(I) A PUPIL ENROLLED IN AN EDUCATION DISTRICT SHALL BE COUNTED
IN MEMBERSHIP IN THE EDUCATION DISTRICT.
(J)(i) For a new district or public school academy beginning

11

its operation after December 31, 1994, or for the education

12

achievement system or an achievement school, membership for the

13

first 2 full or partial fiscal years of operation shall be

14

determined as follows:

15

(i) If operations begin before the pupil membership count day

16

for the fiscal year, membership is the average number of full-time

17

equated pupils in grades K to 12 actually enrolled and in regular

18

daily attendance on the pupil membership count day for the current

19

school year and on the supplemental count day for the current

20

school year, as determined by the department and calculated by

21

adding the number of pupils registered for attendance on the pupil

22

membership count day plus pupils received by transfer and minus

23

pupils lost as defined by rules promulgated by the superintendent,

24

and as corrected by a subsequent department audit, plus the final

25

audited count from the supplemental count day for the current

26

school year, and dividing that sum by 2.

27

(ii) If operations begin after the pupil membership count day

28

for the fiscal year and not later than the supplemental count day

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1

for the fiscal year, membership is the final audited count of the

2

number of full-time equated pupils in grades K to 12 actually

3

enrolled and in regular daily attendance on the supplemental count

4

day for the current school year.

5

(K)(j) If a district is the authorizing body for a public

6

school academy, then, in the first school year in which pupils are

7

counted in membership on the pupil membership count day in the

8

public school academy, the determination of the district's

9

membership shall exclude from the district's pupil count for the

10

immediately preceding supplemental count day any pupils who are

11

counted in the public school academy on that first pupil membership

12

count day who were also counted in the district on the immediately

13

preceding supplemental count day.

14

(L)(k) In a district, a public school academy, the education

15

achievement system, or an intermediate district operating an

16

extended school year program approved by the superintendent, a

17

pupil enrolled, but not scheduled to be in regular daily attendance

18

on a pupil membership count day, shall be counted.

19

(M)(l) To be counted in membership, a pupil shall meet the

20

minimum age requirement to be eligible to attend school under

21

section 1147 of the revised school code, MCL 380.1147, or shall be

22

enrolled under subsection (3) of that section, and shall be less

23

than 20 years of age on September 1 of the school year except as

24

follows:

25

(i) A special education pupil who is enrolled and receiving

26

instruction in a special education program or service approved by

27

the department, who does not have a high school diploma, and who is

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7

1

less than 26 years of age as of September 1 of the current school

2

year shall be counted in membership.

3
4
5

(ii) A pupil who is determined by the department to meet all of
the following may be counted in membership:
(A) Is enrolled in a public school academy or an alternative

6

education high school diploma program, that is primarily focused on

7

educating homeless pupils.

8
9
10
11
12

(B) Had dropped out of school for more than 1 year and has reentered school.
(C) Is less than 22 years of age as of September 1 of the
current school year.
(iii) If a child does not meet the minimum age requirement to be

13

eligible to attend school for that school year under section 1147

14

of the revised school code, MCL 380.1147, but will be 5 years of

15

age not later than December 1 of that school year, the district may

16

count the child in membership for that school year if the parent or

17

legal guardian has notified the district in writing that he or she

18

intends to enroll the child in kindergarten for that school year.

19

(N)(m) An individual who has obtained a high school diploma

20

shall not be counted in membership. An individual who has obtained

21

a general educational development (G.E.D.) certificate shall not be

22

counted in membership unless the individual is a pupil with a

23

disability as defined in R 340.1702 of the Michigan administrative

24

code. An individual participating in a job training program funded

25

under former section 107a or a jobs program funded under former

26

section 107b, administered by the Michigan strategic fund, or

27

participating in any successor of either of those 2 programs, shall

28

not be counted in membership.

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8

1

(O)(n) If a pupil counted in membership in a public school

2

academy or the education achievement system is also educated by a

3

district or intermediate district as part of a cooperative

4

education program, the pupil shall be counted in membership only in

5

the public school academy or the education achievement system

6

unless a written agreement signed by all parties designates the

7

party or parties in which the pupil shall be counted in membership,

8

and the instructional time scheduled for the pupil in the district

9

or intermediate district shall be included in the full-time equated

10

membership determination under subdivision (R)(q). However, for

11

pupils receiving instruction in both a public school academy or the

12

education achievement system and in a district or intermediate

13

district but not as a part of a cooperative education program, the

14

following apply:

15

(i) If the public school academy or the education achievement

16

system provides instruction for at least 1/2 of the class hours

17

specified in subdivision (R)(q), the public school academy or the

18

education achievement system shall receive as its prorated share of

19

the full-time equated membership for each of those pupils an amount

20

equal to 1 times the product of the hours of instruction the public

21

school academy or the education achievement system provides divided

22

by the number of hours specified in subdivision (R)(q) for full-

23

time equivalency, and the remainder of the full-time membership for

24

each of those pupils shall be allocated to the district or

25

intermediate district providing the remainder of the hours of

26

instruction.

27
28

(ii) If the public school academy or the education achievement
system provides instruction for less than 1/2 of the class hours

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9

1

specified in subdivision (R)(q), the district or intermediate

2

district providing the remainder of the hours of instruction shall

3

receive as its prorated share of the full-time equated membership

4

for each of those pupils an amount equal to 1 times the product of

5

the hours of instruction the district or intermediate district

6

provides divided by the number of hours specified in subdivision

7

(R)(q) for full-time equivalency, and the remainder of the full-

8

time membership for each of those pupils shall be allocated to the

9

public school academy or the education achievement system.

10

(P)(o) An individual less than 16 years of age as of September

11

1 of the current school year who is being educated in an

12

alternative education program shall not be counted in membership if

13

there are also adult education participants being educated in the

14

same program or classroom.

15
16
17

(Q)(p) The department shall give a uniform interpretation of
full-time and part-time memberships.
(R)(q) The number of class hours used to calculate full-time

18

equated memberships shall be consistent with section 101(3). In

19

determining full-time equated memberships for pupils who are

20

enrolled in a postsecondary institution, a pupil shall not be

21

considered to be less than a full-time equated pupil solely because

22

of the effect of his or her postsecondary enrollment, including

23

necessary travel time, on the number of class hours provided by the

24

district to the pupil.

25

(S)(r) Beginning in 2012-2013, full-time equated memberships

26

for pupils in kindergarten shall be determined by dividing the

27

number of instructional hours scheduled and provided per year per

28

kindergarten pupil by the same number used for determining full-

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1

time equated memberships for pupils in grades 1 to 12. However, to

2

the extent allowable under federal law, for a district or public

3

school academy that provides evidence satisfactory to the

4

department that it used federal title I money in the 2 immediately

5

preceding school fiscal years to fund full-time kindergarten, full-

6

time equated memberships for pupils in kindergarten shall be

7

determined by dividing the number of class hours scheduled and

8

provided per year per kindergarten pupil by a number equal to 1/2

9

the number used for determining full-time equated memberships for

10

pupils in grades 1 to 12. The change in the counting of full-time

11

equated memberships for pupils in kindergarten that took effect for

12

2012-2013 is not a mandate.

13

(T)(s) For a district, a public school academy, or the

14

education achievement system that has pupils enrolled in a grade

15

level that was not offered by the district, the public school

16

academy, or the education achievement system in the immediately

17

preceding school year, the number of pupils enrolled in that grade

18

level to be counted in membership is the average of the number of

19

those pupils enrolled and in regular daily attendance on the pupil

20

membership count day and the supplemental count day of the current

21

school year, as determined by the department. Membership shall be

22

calculated by adding the number of pupils registered for attendance

23

in that grade level on the pupil membership count day plus pupils

24

received by transfer and minus pupils lost as defined by rules

25

promulgated by the superintendent, and as corrected by subsequent

26

department audit, plus the final audited count from the

27

supplemental count day for the current school year, and dividing

28

that sum by 2.

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1

(U)(t) A pupil enrolled in a cooperative education program may

2

be counted in membership in the pupil's district of residence with

3

the written approval of all parties to the cooperative agreement.

4

(V)(u) If, as a result of a disciplinary action, a district

5

determines through the district's alternative or disciplinary

6

education program that the best instructional placement for a pupil

7

is in the pupil's home or otherwise apart from the general school

8

population, if that placement is authorized in writing by the

9

district superintendent and district alternative or disciplinary

10

education supervisor, and if the district provides appropriate

11

instruction as described in this subdivision to the pupil at the

12

pupil's home or otherwise apart from the general school population,

13

the district may count the pupil in membership on a pro rata basis,

14

with the proration based on the number of hours of instruction the

15

district actually provides to the pupil divided by the number of

16

hours specified in subdivision (R)(q) for full-time equivalency.

17

For the purposes of this subdivision, a district shall be

18

considered to be providing appropriate instruction if all of the

19

following are met:

20

(i) The district provides at least 2 nonconsecutive hours of

21

instruction per week to the pupil at the pupil's home or otherwise

22

apart from the general school population under the supervision of a

23

certificated teacher.

24

(ii) The district provides instructional materials, resources,

25

and supplies that are comparable to those otherwise provided in the

26

district's alternative education program.

27
28

(iii) Course content is comparable to that in the district's
alternative education program.

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1
2
3

(iv) Credit earned is awarded to the pupil and placed on the
pupil's transcript.
(W)(v) If a pupil was enrolled in a public school academy on

4

the pupil membership count day, if the public school academy's

5

contract with its authorizing body is revoked or the public school

6

academy otherwise ceases to operate, and if the pupil enrolls in a

7

district or the education achievement system within 45 days after

8

the pupil membership count day, the department shall adjust the

9

district's or the education achievement system's pupil count for

10
11

the pupil membership count day to include the pupil in the count.
(X)(w) For a public school academy that has been in operation

12

for at least 2 years and that suspended operations for at least 1

13

semester and is resuming operations, membership is the sum of the

14

product of .90 times the number of full-time equated pupils in

15

grades K to 12 actually enrolled and in regular daily attendance on

16

the first pupil membership count day or supplemental count day,

17

whichever is first, occurring after operations resume, plus the

18

product of .10 times the final audited count from the most recent

19

pupil membership count day or supplemental count day that occurred

20

before suspending operations, as determined by the superintendent.

21

(Y)(x) If a district's membership for a particular fiscal

22

year, as otherwise calculated under this subsection, would be less

23

than 1,550 pupils and the district has 4.5 or fewer pupils per

24

square mile, as determined by the department, and if the district

25

does not receive funding under section 22d(2), the district's

26

membership shall be considered to be the membership figure

27

calculated under this subdivision. If a district educates and

28

counts in its membership pupils in grades 9 to 12 who reside in a

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1

contiguous district that does not operate grades 9 to 12 and if 1

2

or both of the affected districts request the department to use the

3

determination allowed under this sentence, the department shall

4

include the square mileage of both districts in determining the

5

number of pupils per square mile for each of the districts for the

6

purposes of this subdivision. The membership figure calculated

7

under this subdivision is the greater of the following:

8
9

(i) The average of the district's membership for the 3-fiscalyear period ending with that fiscal year, calculated by adding the

10

district's actual membership for each of those 3 fiscal years, as

11

otherwise calculated under this subsection, and dividing the sum of

12

those 3 membership figures by 3.

13
14
15

(ii) The district's actual membership for that fiscal year as
otherwise calculated under this subsection.
(Z)(y) Full-time equated memberships for special education

16

pupils who are not enrolled in kindergarten but are enrolled in a

17

classroom program under R 340.1754 of the Michigan administrative

18

code shall be determined by dividing the number of class hours

19

scheduled and provided per year by 450. Full-time equated

20

memberships for special education pupils who are not enrolled in

21

kindergarten but are receiving early childhood special education

22

services under R 340.1755 or 340.1862 of the Michigan

23

administrative code shall be determined by dividing the number of

24

hours of service scheduled and provided per year per pupil by 180.

25

(AA)(z) A pupil of a district that begins its school year

26

after Labor day who is enrolled in an intermediate district program

27

that begins before Labor day shall not be considered to be less

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14

1

than a full-time pupil solely due to instructional time scheduled

2

but not attended by the pupil before Labor day.

3

(BB)(aa) For the first year in which a pupil is counted in

4

membership on the pupil membership count day in a middle college

5

program, the membership is the average of the full-time equated

6

membership on the pupil membership count day and on the

7

supplemental count day for the current school year, as determined

8

by the department.

9

(CC)(bb) A district, a public school academy, or the education

10

achievement system that educates a pupil who attends a United

11

States Olympic education center may count the pupil in membership

12

regardless of whether or not the pupil is a resident of this state.

13

(DD)(cc) A pupil enrolled in a district other than the pupil's

14

district of residence pursuant to section 1148(2) of the revised

15

school code, MCL 380.1148, shall be counted in the educating

16

district or the education achievement system.

17

(EE)(dd) For a pupil enrolled in a dropout recovery program

18

that meets the requirements of section 23a, the pupil shall be

19

counted as 1/12 of a full-time equated membership for each month

20

that the district operating the program reports that the pupil was

21

enrolled in the program and was in full attendance. However, if the

22

special membership counting provisions under this subdivision and

23

the operation of the other membership counting provisions under

24

this subsection result in a pupil being counted as more than 1.0

25

FTE in a fiscal year, the payment made for the pupil under sections

26

22a and 22b shall not be based on more than 1.0 FTE for that pupil,

27

and any portion of an FTE for that pupil that exceeds 1.0 shall

28

instead be paid under section 25f. The district operating the

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1

program shall report to the center the number of pupils who were

2

enrolled in the program and were in full attendance for a month not

3

later than the tenth day of the next month. A district shall not

4

report a pupil as being in full attendance for a month unless both

5

of the following are met:

6

(i) A personalized learning plan is in place on or before the

7

first school day of the month for the first month the pupil

8

participates in the program.

9

(ii) The pupil meets the district's definition under section

10

23a of satisfactory monthly progress for that month or, if the

11

pupil does not meet that definition of satisfactory monthly

12

progress for that month, the pupil did meet that definition of

13

satisfactory monthly progress in the immediately preceding month

14

and appropriate interventions are implemented within 10 school days

15

after it is determined that the pupil does not meet that definition

16

of satisfactory monthly progress.

17
18

(6)(5) "Public school academy" means that term as defined in
section 5 of the revised school code, MCL 380.5.

19

(7)(6) "Pupil" means a person in membership in a public

20

school. A district must have the approval of the pupil's district

21

of residence to count the pupil in membership, except approval by

22

the pupil's district of residence is not required for any of the

23

following:

24
25
26
27

(a) A nonpublic part-time pupil enrolled in grades 1 to 12 in
accordance with section 166b.
(b) A pupil receiving 1/2 or less of his or her instruction in
a district other than the pupil's district of residence.

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16

1
2
3

(c) A pupil enrolled in a public school academy or the
education achievement system.
(d) A pupil enrolled in a district other than the pupil's

4

district of residence under an intermediate district schools of

5

choice pilot program as described in section 91a or former section

6

91 if the intermediate district and its constituent districts have

7

been exempted from section 105.

8
9
10
11

(e) A pupil enrolled in a district other than the pupil's
district of residence if the pupil is enrolled in accordance with
section 105 or 105c.
(f) A pupil who has made an official written complaint or

12

whose parent or legal guardian has made an official written

13

complaint to law enforcement officials and to school officials of

14

the pupil's district of residence that the pupil has been the

15

victim of a criminal sexual assault or other serious assault, if

16

the official complaint either indicates that the assault occurred

17

at school or that the assault was committed by 1 or more other

18

pupils enrolled in the school the pupil would otherwise attend in

19

the district of residence or by an employee of the district of

20

residence. A person who intentionally makes a false report of a

21

crime to law enforcement officials for the purposes of this

22

subdivision is subject to section 411a of the Michigan penal code,

23

1931 PA 328, MCL 750.411a, which provides criminal penalties for

24

that conduct. As used in this subdivision:

25

(i) "At school" means in a classroom, elsewhere on school

26

premises, on a school bus or other school-related vehicle, or at a

27

school-sponsored activity or event whether or not it is held on

28

school premises.

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17

1

(ii) "Serious assault" means an act that constitutes a felony

2

violation of chapter XI of the Michigan penal code, 1931 PA 328,

3

MCL 750.81 to 750.90h, or that constitutes an assault and

4

infliction of serious or aggravated injury under section 81a of the

5

Michigan penal code, 1931 PA 328, MCL 750.81a.

6

(g) A pupil whose district of residence changed after the

7

pupil membership count day and before the supplemental count day

8

and who continues to be enrolled on the supplemental count day as a

9

nonresident in the district in which he or she was enrolled as a

10

resident on the pupil membership count day of the same school year.

11

(h) A pupil enrolled in an alternative education program

12

operated by a district other than his or her district of residence

13

who meets 1 or more of the following:

14

(i) The pupil has been suspended or expelled from his or her

15

district of residence for any reason, including, but not limited

16

to, a suspension or expulsion under section 1310, 1311, or 1311a of

17

the revised school code, MCL 380.1310, 380.1311, and 380.1311a.

18

(ii) The pupil had previously dropped out of school.

19

(iii) The pupil is pregnant or is a parent.

20

(iv) The pupil has been referred to the program by a court.

21

(i) A pupil enrolled in the Michigan virtual school, for the

22

pupil's enrollment in the Michigan virtual school.

23

(j) A pupil who is the child of a person who works at the

24

district or who is the child of a person who worked at the district

25

as of the time the pupil first enrolled in the district but who no

26

longer works at the district due to a workforce reduction. As used

27

in this subdivision, "child" includes an adopted child, stepchild,

28

or legal ward.

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18

1

(k) An expelled pupil who has been denied reinstatement by the

2

expelling district and is reinstated by another school board under

3

section 1311 or 1311a of the revised school code, MCL 380.1311 and

4

380.1311a.

5

(l) A pupil enrolled in a district other than the pupil's

6

district of residence in a middle college program if the pupil's

7

district of residence and the enrolling district are both

8

constituent districts of the same intermediate district.

9

(m) A pupil enrolled in a district other than the pupil's

10

district of residence who attends a United States Olympic education

11

center.

12

(n) A pupil enrolled in a district other than the pupil's

13

district of residence pursuant to section 1148(2) of the revised

14

school code, MCL 380.1148.

15

(o) A pupil who enrolls in a district other than the pupil's

16

district of residence as a result of the pupil's school not making

17

adequate yearly progress under the no child left behind act of

18

2001, Public Law 107-110.

19

(p) An online learning pupil enrolled in a district other than

20

the pupil's district of residence as an eligible pupil under

21

section 21f. However, if a district educates pupils who reside in

22

another district and if the primary instructional site for those

23

pupils is established by the educating district after 2009-2010 and

24

is located within the boundaries of that other district, the

25

educating district must have the approval of that other district to

26

count those pupils in membership.

27
28

(Q) A PUPIL ENROLLED IN AN EDUCATION DISTRICT IF THE PUPIL
ALSO IS RESIDENT IN A QUALIFYING SCHOOL DISTRICT THAT TRANSFERRED

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19

1

FUNCTIONS AND RESPONSIBILITIES TO THAT EDUCATION DISTRICT UNDER

2

SECTION 402 OF THE REVISED SCHOOL CODE, MCL 380.402.

3
4

(7) "Pupil membership count day" of a district or intermediate
district means:

5

(a) Except as provided in subdivision (b), the first Wednesday

6

in October each school year or, for a district or building in which

7

school is not in session on that Wednesday due to conditions not

8

within the control of school authorities, with the approval of the

9

superintendent, the immediately following day on which school is in

10
11
12

session in the district or building.
(b) For a district or intermediate district maintaining school
during the entire school year, the following days:

13

(i) Fourth Wednesday in July.

14

(ii) First Wednesday in October.

15

(iii) Second Wednesday in February.

16

(iv) Fourth Wednesday in April.

17

(8) "Pupils in grades K to 12 actually enrolled and in regular

18

daily attendance" means pupils in grades K to 12 in attendance and

19

receiving instruction in all classes for which they are enrolled on

20

the pupil membership count day or the supplemental count day, as

21

applicable. Except as otherwise provided in this subsection, a

22

pupil who is absent from any of the classes in which the pupil is

23

enrolled on the pupil membership count day or supplemental count

24

day and who does not attend each of those classes during the 10

25

consecutive school days immediately following the pupil membership

26

count day or supplemental count day, except for a pupil who has

27

been excused by the district, shall not be counted as 1.0 full-time

28

equated membership. A pupil who is excused from attendance on the

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20

1

pupil membership count day or supplemental count day and who fails

2

to attend each of the classes in which the pupil is enrolled within

3

30 calendar days after the pupil membership count day or

4

supplemental count day shall not be counted as 1.0 full-time

5

equated membership. In addition, a pupil who was enrolled and in

6

attendance in a district, an intermediate district, a public school

7

academy, or the education achievement system before the pupil

8

membership count day or supplemental count day of a particular year

9

but was expelled or suspended on the pupil membership count day or

10

supplemental count day shall only be counted as 1.0 full-time

11

equated membership if the pupil resumed attendance in the district,

12

intermediate district, public school academy, or education

13

achievement system within 45 days after the pupil membership count

14

day or supplemental count day of that particular year. Pupils not

15

counted as 1.0 full-time equated membership due to an absence from

16

a class shall be counted as a prorated membership for the classes

17

the pupil attended. For purposes of this subsection, "class" means

18

a period of time in 1 day when pupils and a certificated teacher or

19

legally qualified substitute teacher are together and instruction

20

is taking place.

21

(9) "Rule" means a rule promulgated pursuant to the

22

administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

23

24.328.

24
25

(10) "The revised school code" means 1976 PA 451, MCL 380.1 to
380.1852.

26

(11) "School district of the first class", "first class school

27

district", and "district of the first class" mean, for the purposes

28

of this article only, AND ONLY UNTIL JUNE 30, 2016, a district that

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21

1

had at least 40,000 pupils in membership for the immediately

2

preceding fiscal year.

3
4
5
6

(12) "SCHOOL EMPOWERMENT ZONE" MEANS A BODY CORPORATE
ESTABLISHED UNDER PART 7C OF THE REVISED SCHOOL CODE.
(13) (12) "School fiscal year" means a fiscal year that
commences July 1 and continues through June 30.

7

(14) (13) "State board" means the state board of education.

8

(15) (14) "Superintendent", unless the context clearly refers

9

to a district or intermediate district superintendent, means the

10

superintendent of public instruction described in section 3 of

11

article VIII of the state constitution of 1963.

12
13
14

(16) (15) "Supplemental count day" means the day on which the
supplemental pupil count is conducted under section 6a.
(17) (16) "Tuition pupil" means a pupil of school age

15

attending school in a district other than the pupil's district of

16

residence for whom tuition may be charged to the district of

17

residence. Tuition pupil does not include a pupil who is a special

18

education pupil, a pupil described in subsection (6)(c) to (p), or

19

a pupil whose parent or guardian voluntarily enrolls the pupil in a

20

district that is not the pupil's district of residence. A pupil's

21

district of residence shall not require a high school tuition

22

pupil, as provided under section 111, to attend another school

23

district after the pupil has been assigned to a school district.

24

(18) (17) "State school aid fund" means the state school aid

25

fund established in section 11 of article IX of the state

26

constitution of 1963.

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22

1

(19) (18) "Taxable value" means the taxable value of property

2

as determined under section 27a of the general property tax act,

3

1893 PA 206, MCL 211.27a.

4

(20) (19) "Textbook" means a book, electronic book, or other

5

instructional print or electronic resource that is selected and

6

approved by the governing board of a district or, for an

7

achievement school, by the chancellor of the achievement authority

8

and that contains a presentation of principles of a subject, or

9

that is a literary work relevant to the study of a subject required

10

for the use of classroom pupils, or another type of course material

11

that forms the basis of classroom instruction.

12

(21) (20) "Total state aid" or "total state school aid" means

13

the total combined amount of all funds due to a district,

14

intermediate district, SCHOOL EMPOWERMENT ZONE, or other entity

15

under all of the provisions of this article.

16

Sec. 20. (1) For 2014-2015, both of the following apply:

17

(a) The basic foundation allowance is $8,099.00.

18

(b) The minimum foundation allowance is $7,126.00.

19

(2) The amount of each district's foundation allowance shall

20

be calculated as provided in this section, using a basic foundation

21

allowance in the amount specified in subsection (1).

22

(3) Except as otherwise provided in this section, the amount

23

of a district's foundation allowance shall be calculated as

24

follows, using in all calculations the total amount of the

25

district's foundation allowance as calculated before any proration:

26

(a) Except as otherwise provided in this subdivision, for a

27

district that had a foundation allowance for the immediately

28

preceding state fiscal year that was equal to the minimum

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23

1

foundation allowance for the immediately preceding state fiscal

2

year, but less than the basic foundation allowance for the

3

immediately preceding state fiscal year, the district shall receive

4

a foundation allowance in an amount equal to the sum of the

5

district's foundation allowance for the immediately preceding state

6

fiscal year plus the difference between twice the dollar amount of

7

the adjustment from the immediately preceding state fiscal year to

8

the current state fiscal year made in the basic foundation

9

allowance and [(the difference between the basic foundation

10

allowance for the current state fiscal year and basic foundation

11

allowance for the immediately preceding state fiscal year minus

12

$10.00) times (the difference between the district's foundation

13

allowance for the immediately preceding state fiscal year and the

14

minimum foundation allowance for the immediately preceding state

15

fiscal year) divided by the difference between the basic foundation

16

allowance for the current state fiscal year and the minimum

17

foundation allowance for the immediately preceding state fiscal

18

year]. However, the foundation allowance for a district that had

19

less than the basic foundation allowance for the immediately

20

preceding state fiscal year shall not exceed the basic foundation

21

allowance for the current state fiscal year. For the purposes of

22

this subdivision, for 2014-2015, the minimum foundation allowance

23

for the immediately preceding state fiscal year shall be considered

24

to be $7,076.00. For 2014-2015, for a district that had a

25

foundation allowance for the immediately preceding state fiscal

26

year that was at least equal to the minimum foundation allowance

27

for the immediately preceding state fiscal year but less than the

28

basic foundation allowance for the immediately preceding state

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____

24

1

fiscal year, the district shall receive a foundation allowance in

2

an amount equal to the district's foundation allowance for 2013-

3

2014 plus $50.00.

4

(b) Except as otherwise provided in this subsection, for a

5

district that in the immediately preceding state fiscal year had a

6

foundation allowance in an amount equal to the amount of the basic

7

foundation allowance for the immediately preceding state fiscal

8

year, the district shall receive a foundation allowance for 2014-

9

2015 in an amount equal to the basic foundation allowance for 2014-

10
11

2015.
(c) For a district that had a foundation allowance for the

12

immediately preceding state fiscal year that was greater than the

13

basic foundation allowance for the immediately preceding state

14

fiscal year, the district's foundation allowance is an amount equal

15

to the sum of the district's foundation allowance for the

16

immediately preceding state fiscal year plus the lesser of the

17

increase in the basic foundation allowance for the current state

18

fiscal year, as compared to the immediately preceding state fiscal

19

year, or the product of the district's foundation allowance for the

20

immediately preceding state fiscal year times the percentage

21

increase in the United States consumer price index in the calendar

22

year ending in the immediately preceding fiscal year as reported by

23

the May revenue estimating conference conducted under section 367b

24

of the management and budget act, 1984 PA 431, MCL 18.1367b.

25

(d) For a district that has a foundation allowance that is not

26

a whole dollar amount, the district's foundation allowance shall be

27

rounded up to the nearest whole dollar.

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____

25

1

(e) For a district that received a payment under section 22c

2

as that section was in effect for 2013-2014, the district's 2013-

3

2014 foundation allowance shall be considered to have been an

4

amount equal to the sum of the district's actual 2013-2014

5

foundation allowance as otherwise calculated under this section

6

plus the per pupil amount of the district's equity payment for

7

2013-2014 under section 22c as that section was in effect for 2013-

8

2014.

9

(F) EXCEPT AS OTHERWISE PROVIDED IN THIS SUBSECTION, FOR AN

10

EDUCATION DISTRICT, THE FOUNDATION ALLOWANCE SHALL BE AN AMOUNT

11

EQUAL TO THE HIGHEST FOUNDATION ALLOWANCE OF A QUALIFYING SCHOOL

12

DISTRICT UNDER SECTION 402 OF THE REVISED SCHOOL CODE, MCL 380.402,

13

LOCATED WITHIN THE SAME GEOGRAPHIC AREA AS THE EDUCATION DISTRICT.

14

(4) Except as otherwise provided in this subsection, the state

15

portion of a district's foundation allowance is an amount equal to

16

the district's foundation allowance or the basic foundation

17

allowance for the current state fiscal year, whichever is less,

18

minus the local portion of the district's foundation allowance

19

divided by the district's membership excluding special education

20

pupils. For a district described in subsection (3)(c), the state

21

portion of the district's foundation allowance is an amount equal

22

to $6,962.00 plus the difference between the district's foundation

23

allowance for the current state fiscal year and the district's

24

foundation allowance for 1998-99, minus the local portion of the

25

district's foundation allowance divided by the district's

26

membership excluding special education pupils. For a district that

27

has a millage reduction required under section 31 of article IX of

28

the state constitution of 1963, the state portion of the district's

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26

1

foundation allowance shall be calculated as if that reduction did

2

not occur. For a receiving district, if school operating taxes

3

continue to be levied on behalf of a dissolved district that has

4

been attached in whole or in part to the receiving district to

5

satisfy debt obligations of the dissolved district under section 12

6

of the revised school code, MCL 380.12, the taxable value per

7

membership pupil of property in the receiving district used for the

8

purposes of this subsection does not include the taxable value of

9

property within the geographic area of the dissolved district. FOR

10

AN EDUCATION DISTRICT ORGANIZED UNDER PART 2A OF THE REVISED SCHOOL

11

CODE, MCL 380.101 TO 380.110, IF SCHOOL OPERATING TAXES CONTINUE TO

12

BE LEVIED BY A QUALIFYING SCHOOL DISTRICT UNDER SECTION 402 OF THE

13

REVISED SCHOOL CODE, MCL 380.402, WITH THE SAME GEOGRAPHIC AREA AS

14

THE EDUCATION DISTRICT, THE TAXABLE VALUE PER MEMBERSHIP PUPIL OF

15

PROPERTY IN THE EDUCATION USED FOR THE PURPOSES OF THIS SUBSECTION

16

DOES NOT INCLUDE THE TAXABLE VALUE OF PROPERTY WITHIN THE

17

GEOGRAPHIC AREA OF THE QUALIFYING SCHOOL DISTRICT.

18

(5) The allocation calculated under this section for a pupil

19

shall be based on the foundation allowance of the pupil's district

20

of residence. IF A PUPIL'S RESIDENCE IS IN BOTH AN EDUCATION

21

DISTRICT AND ANOTHER SCHOOL DISTRICT, FOR PURPOSES OF THIS

22

SUBSECTION, THE PUPIL'S DISTRICT OF RESIDENCE SHALL BE THE

23

EDUCATION DISTRICT. For a pupil enrolled pursuant to section 105 or

24

105c in a district other than the pupil's district of residence,

25

the allocation calculated under this section shall be based on the

26

lesser of the foundation allowance of the pupil's district of

27

residence or the foundation allowance of the educating district.

28

For a pupil in membership in a K-5, K-6, or K-8 district who is

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27

1

enrolled in another district in a grade not offered by the pupil's

2

district of residence, the allocation calculated under this section

3

shall be based on the foundation allowance of the educating

4

district if the educating district's foundation allowance is

5

greater than the foundation allowance of the pupil's district of

6

residence.

7

(6) Except as otherwise provided in this subsection, for

8

pupils in membership, other than special education pupils, in a

9

public school academy, the allocation calculated under this section

10

is an amount per membership pupil other than special education

11

pupils in the public school academy equal to the foundation

12

allowance of the district in which the public school academy is

13

located or the state maximum public school academy allocation,

14

whichever is less. However, a public school academy that had an

15

allocation under this subsection before 2009-2010 that was equal to

16

the sum of the local school operating revenue per membership pupil

17

other than special education pupils for the district in which the

18

public school academy is located and the state portion of that

19

district's foundation allowance shall not have that allocation

20

reduced as a result of the 2010 amendment to this subsection.

21

Notwithstanding section 101, for a public school academy that

22

begins operations after the pupil membership count day, the amount

23

per membership pupil calculated under this subsection shall be

24

adjusted by multiplying that amount per membership pupil by the

25

number of hours of pupil instruction provided by the public school

26

academy after it begins operations, as determined by the

27

department, divided by the minimum number of hours of pupil

28

instruction required under section 101(3). The result of this

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____

28

1

calculation shall not exceed the amount per membership pupil

2

otherwise calculated under this subsection.

3

(7) Except as otherwise provided in this subsection, for

4

pupils attending an achievement school and in membership in the

5

education achievement system, other than special education pupils,

6

the allocation calculated under this section is an amount per

7

membership pupil other than special education pupils equal to the

8

foundation allowance of the district in which the achievement

9

school is located, not to exceed the basic foundation allowance.

10

Notwithstanding section 101, for an achievement school that begins

11

operation after the pupil membership count day, the amount per

12

membership pupil calculated under this subsection shall be adjusted

13

by multiplying that amount per membership pupil by the number of

14

hours of pupil instruction provided by the achievement school after

15

it begins operations, as determined by the department, divided by

16

the minimum number of hours of pupil instruction required under

17

section 101(3). The result of this calculation shall not exceed the

18

amount per membership pupil otherwise calculated under this

19

subsection. For the purposes of this subsection, if a public school

20

is transferred from a district to the state school reform/redesign

21

district or the achievement authority under section 1280c of the

22

revised school code, MCL 380.1280c, that public school is

23

considered to be an achievement school within the education

24

achievement system and not a school that is part of a district, and

25

a pupil attending that public school is considered to be in

26

membership in the education achievement system and not in

27

membership in the district that operated the school before the

28

transfer.

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29

1

(8) Subject to subsection (4), for a district that is formed

2

or reconfigured after June 1, 2002 by consolidation of 2 or more

3

districts or by annexation, the resulting district's foundation

4

allowance under this section beginning after the effective date of

5

the consolidation or annexation shall be the lesser of the sum of

6

the average of the foundation allowances of each of the original or

7

affected districts, calculated as provided in this section,

8

weighted as to the percentage of pupils in total membership in the

9

resulting district who reside in the geographic area of each of the

10

original or affected districts plus $100.00 or the highest

11

foundation allowance among the original or affected districts. This

12

subsection does not apply to a receiving district unless there is a

13

subsequent consolidation or annexation that affects the district.

14

(9) Each fraction used in making calculations under this

15

section shall be rounded to the fourth decimal place and the dollar

16

amount of an increase in the basic foundation allowance shall be

17

rounded to the nearest whole dollar.

18

(10) State payments related to payment of the foundation

19

allowance for a special education pupil are not calculated under

20

this section but are instead calculated under section 51a.

21

(11) To assist the legislature in determining the basic

22

foundation allowance for the subsequent state fiscal year, each

23

revenue estimating conference conducted under section 367b of the

24

management and budget act, 1984 PA 431, MCL 18.1367b, shall

25

calculate a pupil membership factor, a revenue adjustment factor,

26

and an index as follows:

27
28

(a) The pupil membership factor shall be computed by dividing
the estimated membership in the school year ending in the current

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____

30

1

state fiscal year, excluding intermediate district membership, by

2

the estimated membership for the school year ending in the

3

subsequent state fiscal year, excluding intermediate district

4

membership. If a consensus membership factor is not determined at

5

the revenue estimating conference, the principals of the revenue

6

estimating conference shall report their estimates to the house and

7

senate subcommittees responsible for school aid appropriations not

8

later than 7 days after the conclusion of the revenue conference.

9

(b) The revenue adjustment factor shall be computed by

10

dividing the sum of the estimated total state school aid fund

11

revenue for the subsequent state fiscal year plus the estimated

12

total state school aid fund revenue for the current state fiscal

13

year, adjusted for any change in the rate or base of a tax the

14

proceeds of which are deposited in that fund and excluding money

15

transferred into that fund from the countercyclical budget and

16

economic stabilization fund under the management and budget act,

17

1984 PA 431, MCL 18.1101 to 18.1594, by the sum of the estimated

18

total school aid fund revenue for the current state fiscal year

19

plus the estimated total state school aid fund revenue for the

20

immediately preceding state fiscal year, adjusted for any change in

21

the rate or base of a tax the proceeds of which are deposited in

22

that fund. If a consensus revenue factor is not determined at the

23

revenue estimating conference, the principals of the revenue

24

estimating conference shall report their estimates to the house and

25

senate subcommittees responsible for school aid appropriations not

26

later than 7 days after the conclusion of the revenue conference.

27
28

(c) The index shall be calculated by multiplying the pupil
membership factor by the revenue adjustment factor. If a consensus

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____

31

1

index is not determined at the revenue estimating conference, the

2

principals of the revenue estimating conference shall report their

3

estimates to the house and senate subcommittees responsible for

4

school aid appropriations not later than 7 days after the

5

conclusion of the revenue conference.

6

(12) Payments to districts, public school academies, or the

7

education achievement system shall not be made under this section.

8

Rather, the calculations under this section shall be used to

9

determine the amount of state payments under section 22b.

10

(13) If an amendment to section 2 of article VIII of the state

11

constitution of 1963 allowing state aid to some or all nonpublic

12

schools is approved by the voters of this state, each foundation

13

allowance or per pupil payment calculation under this section may

14

be reduced.

15

(14) As used in this section:

16

(a) "Certified mills" means the lesser of 18 mills or the

17

number of mills of school operating taxes levied by the district in

18

1993-94.

19

(b) "Combined state and local revenue" means the aggregate of

20

the district's state school aid received by or paid on behalf of

21

the district under this section and the district's local school

22

operating revenue.

23

(c) "Combined state and local revenue per membership pupil"

24

means the district's combined state and local revenue divided by

25

the district's membership excluding special education pupils.

26
27

(d) "Current state fiscal year" means the state fiscal year
for which a particular calculation is made.

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____

32

1

(e) "Dissolved district" means a district that loses its

2

organization, has its territory attached to 1 or more other

3

districts, and is dissolved as provided under section 12 of the

4

revised school code, MCL 380.12.

5
6
7

(f) "Immediately preceding state fiscal year" means the state
fiscal year immediately preceding the current state fiscal year.
(g) "Local portion of the district's foundation allowance"

8

means an amount that is equal to the difference between (the sum of

9

the product of the taxable value per membership pupil of all

10

property in the district that is nonexempt property times the

11

district's certified mills and, for a district with certified mills

12

exceeding 12, the product of the taxable value per membership pupil

13

of property in the district that is commercial personal property

14

times the certified mills minus 12 mills) and (the quotient of the

15

product of the captured assessed valuation under tax increment

16

financing acts times the district's certified mills divided by the

17

district's membership excluding special education pupils).

18

(h) "Local school operating revenue" means school operating

19

taxes levied under section 1211 of the revised school code, MCL

20

380.1211. For a receiving district, if school operating taxes are

21

to be levied on behalf of a dissolved district that has been

22

attached in whole or in part to the receiving district to satisfy

23

debt obligations of the dissolved district under section 12 of the

24

revised school code, MCL 380.12, local school operating revenue

25

does not include school operating taxes levied within the

26

geographic area of the dissolved district.

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33

1

(i) "Local school operating revenue per membership pupil"

2

means a district's local school operating revenue divided by the

3

district's membership excluding special education pupils.

4

(j) "Maximum public school academy allocation", except as

5

otherwise provided in this subdivision, means the maximum per-pupil

6

allocation as calculated by adding the highest per-pupil allocation

7

among all public school academies for the immediately preceding

8

state fiscal year plus the difference between twice the amount of

9

the difference between the basic foundation allowance for the

10

current state fiscal year and the basic foundation for the

11

immediately preceding state fiscal year and [(the amount of the

12

difference between the basic foundation allowance for the current

13

state fiscal year and the basic foundation for the immediately

14

preceding state fiscal year minus $10.00) times (the difference

15

between the highest per-pupil allocation among all public school

16

academies for the immediately preceding state fiscal year and the

17

minimum foundation allowance for the immediately preceding state

18

fiscal year) divided by the difference between the basic foundation

19

allowance for the current state fiscal year and the minimum

20

foundation allowance for the immediately preceding state fiscal

21

year]. For the purposes of this subdivision, for 2014-2015, the

22

minimum foundation allowance for the immediately preceding state

23

fiscal year shall be considered to be $7,076.00. For 2014-2015, the

24

maximum public school academy allocation is $7,218.00.

25

(k) "Membership" means the definition of that term under

26

section 6 as in effect for the particular fiscal year for which a

27

particular calculation is made.

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____

34

1

(l) "Nonexempt property" means property that is not a

2

principal residence, qualified agricultural property, qualified

3

forest property, supportive housing property, industrial personal

4

property, or commercial personal property.

5

(m) "Principal residence", "qualified agricultural property",

6

"qualified forest property", "supportive housing property",

7

"industrial personal property", and "commercial personal property"

8

mean those terms as defined in section 1211 of the revised school

9

code, MCL 380.1211.

10

(n) "Receiving district" means a district to which all or part

11

of the territory of a dissolved district is attached under section

12

12 of the revised school code, MCL 380.12.

13

(o) "School operating purposes" means the purposes included in

14

the operation costs of the district as prescribed in sections 7 and

15

18 and purposes authorized under section 1211 of the revised school

16

code, MCL 380.1211.

17

(p) "School operating taxes" means local ad valorem property

18

taxes levied under section 1211 of the revised school code, MCL

19

380.1211, and retained for school operating purposes.

20

(q) "Tax increment financing acts" means 1975 PA 197, MCL

21

125.1651 to 125.1681, the tax increment finance authority act, 1980

22

PA 450, MCL 125.1801 to 125.1830, the local development financing

23

act, 1986 PA 281, MCL 125.2151 to 125.2174, the brownfield

24

redevelopment financing act, 1996 PA 381, MCL 125.2651 to 125.2672,

25

or the corridor improvement authority act, 2005 PA 280, MCL

26

125.2871 to 125.2899.

27
28

(r) "Taxable value per membership pupil" means taxable value,
as certified by the county treasurer and reported to the

______'15

____

35

1

department, for the calendar year ending in the current state

2

fiscal year divided by the district's membership excluding special

3

education pupils for the school year ending in the current state

4

fiscal year.

5

Sec. 31a. (1) From the state school aid fund money

6

appropriated in section 11, there is allocated for 2014-2015 an

7

amount not to exceed $317,695,500.00 for payments to eligible

8

districts, eligible public school academies, and the education

9

achievement system for the purposes of ensuring that pupils are

10

proficient in reading by the end of grade 3 and that high school

11

graduates are career and college ready and for the purposes under

12

subsections (6) and (7). In addition to the appropriations under

13

section 11, an additional amount not to exceed $40,000,000.00 is

14

appropriated from the state school aid fund for 2014-2015 for the

15

purposes of this section.

16

(2) For a district or public school academy, or the education

17

achievement system, to be eligible to receive funding under this

18

section, other than funding under subsection (6) or (7), the sum of

19

the district's or public school academy's or the education

20

achievement system's combined state and local revenue per

21

membership pupil in the current state fiscal year, as calculated

22

under section 20, must be less than or equal to the basic

23

foundation allowance under section 20 for the current state fiscal

24

year.

25

(3) Except as otherwise provided in this subsection, an

26

eligible district or eligible public school academy or the

27

education achievement system shall receive under this section for

28

each membership pupil in the district or public school academy or

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____

36

1

the education achievement system who met the income eligibility

2

criteria for free breakfast, lunch, or milk, as determined under

3

the Richard B. Russell national school lunch act, 42 USC 1751 to

4

1769, and as reported to the department in the form and manner

5

prescribed by the department not later than the fifth Wednesday

6

after the pupil membership count day of the immediately preceding

7

fiscal year and adjusted not later than December 31 of the

8

immediately preceding fiscal year, an amount per pupil equal to

9

11.5% of the sum of the district's foundation allowance or the

10

public school academy's or the education achievement system's per

11

pupil amount calculated under section 20, not to exceed the basic

12

foundation allowance under section 20 for the current state fiscal

13

year, or of the public school academy's or the education

14

achievement system's per membership pupil amount calculated under

15

section 20 for the current state fiscal year. However, a public

16

school academy that began operations as a public school academy, AN

17

EDUCATION DISTRICT THAT FIRST ENROLLED PUPILS, or an achievement

18

school that began operations as an achievement school, after the

19

pupil membership count day of the immediately preceding school year

20

shall receive under this section for each membership pupil in the

21

public school academy, IN THE EDUCATION DISTRICT, or in the

22

education achievement system who met the income eligibility

23

criteria for free breakfast, lunch, or milk, as determined under

24

the Richard B. Russell national school lunch act and as reported to

25

the department not later than the fifth Wednesday after the pupil

26

membership count day of the current fiscal year and adjusted not

27

later than December 31 of the current fiscal year, an amount per

28

pupil equal to 11.5% of the public school academy's, THE EDUCATION

______'15

____

37

1

DISTRICT'S, or the education achievement system's per membership

2

pupil amount calculated under section 20 for the current state

3

fiscal year.

4

(4) Except as otherwise provided in this section, a district

5

or public school academy, or the education achievement system,

6

receiving funding under this section shall use that money only to

7

provide instructional programs and direct noninstructional

8

services, including, but not limited to, medical, mental health, or

9

counseling services, for at-risk pupils; for school health clinics;

10

and for the purposes of subsection (5), (6), (7), or (10). In

11

addition, a district that is a school district of the first class

12

or a district or public school academy in which at least 50% of the

13

pupils in membership met the income eligibility criteria for free

14

breakfast, lunch, or milk in the immediately preceding state fiscal

15

year, as determined and reported as described in subsection (3), or

16

the education achievement system if it meets this requirement, may

17

use not more than 20% of the funds it receives under this section

18

for school security. A district, the public school academy, or the

19

education achievement system shall not use any of that money for

20

administrative costs. The instruction or direct noninstructional

21

services provided under this section may be conducted before or

22

after regular school hours or by adding extra school days to the

23

school year.

24

(5) A district or public school academy that receives funds

25

under this section and that operates a school breakfast program

26

under section 1272a of the revised school code, MCL 380.1272a, or

27

the education achievement system if it operates a school breakfast

28

program, shall use from the funds received under this section an

______'15

____

38

1

amount, not to exceed $10.00 per pupil for whom the district or

2

public school academy or the education achievement system receives

3

funds under this section, necessary to pay for costs associated

4

with the operation of the school breakfast program.

5

(6) From the funds allocated under subsection (1), there is

6

allocated for 2014-2015 an amount not to exceed $3,557,300.00 to

7

support child and adolescent health centers. These grants shall be

8

awarded for 5 consecutive years beginning with 2003-2004 in a form

9

and manner approved jointly by the department and the department of

10

community health. Each grant recipient shall remain in compliance

11

with the terms of the grant award or shall forfeit the grant award

12

for the duration of the 5-year period after the noncompliance. To

13

continue to receive funding for a child and adolescent health

14

center under this section a grant recipient shall ensure that the

15

child and adolescent health center has an advisory committee and

16

that at least one-third of the members of the advisory committee

17

are parents or legal guardians of school-aged children. A child and

18

adolescent health center program shall recognize the role of a

19

child's parents or legal guardian in the physical and emotional

20

well-being of the child. Funding under this subsection shall be

21

used to support child and adolescent health center services

22

provided to children up to age 21. If any funds allocated under

23

this subsection are not used for the purposes of this subsection

24

for the fiscal year in which they are allocated, those unused funds

25

shall be used that fiscal year to avoid or minimize any proration

26

that would otherwise be required under subsection (14) for that

27

fiscal year.

______'15

____

39

1

(7) From the funds allocated under subsection (1), there is

2

allocated for 2014-2015 an amount not to exceed $5,150,000.00 for

3

the state portion of the hearing and vision screenings as described

4

in section 9301 of the public health code, 1978 PA 368, MCL

5

333.9301. A local public health department shall pay at least 50%

6

of the total cost of the screenings. The frequency of the

7

screenings shall be as required under R 325.13091 to R 325.13096

8

and R 325.3271 to R 325.3276 of the Michigan administrative code.

9

Funds shall be awarded in a form and manner approved jointly by the

10

department and the department of community health. Notwithstanding

11

section 17b, payments to eligible entities under this subsection

12

shall be paid on a schedule determined by the department.

13

(8) Each district or public school academy receiving funds

14

under this section and the education achievement system shall

15

submit to the department by July 15 of each fiscal year a report,

16

not to exceed 10 pages, on the usage by the district or public

17

school academy or the education achievement system of funds under

18

this section, which report shall include a brief description of

19

each program conducted or services performed by the district or

20

public school academy or the education achievement system using

21

funds under this section, the amount of funds under this section

22

allocated to each of those programs or services, the total number

23

of at-risk pupils served by each of those programs or services, and

24

the data necessary for the department and the department of human

25

services to verify matching funds for the temporary assistance for

26

needy families program. If a district or public school academy or

27

the education achievement system does not comply with this

28

subsection, the department shall withhold an amount equal to the

______'15

____

40

1

August payment due under this section until the district or public

2

school academy or the education achievement system complies with

3

this subsection. If the district or public school academy or the

4

education achievement system does not comply with this subsection

5

by the end of the state fiscal year, the withheld funds shall be

6

forfeited to the school aid fund.

7

(9) In order to receive funds under this section, a district

8

or public school academy or the education achievement system shall

9

allow access for the department or the department's designee to

10

audit all records related to the program for which it receives

11

those funds. The district or public school academy or the education

12

achievement system shall reimburse the state for all disallowances

13

found in the audit.

14

(10) Subject to subsections (5), (6), and (7), a district may

15

use up to 100% of the funds it receives under this section to

16

implement schoolwide reform in schools with 40% or more of their

17

pupils identified as at-risk pupils by providing supplemental

18

instructional or noninstructional services consistent with the

19

school improvement plan.

20

(11) If necessary, and before any proration required under

21

section 296, the department shall prorate payments under this

22

section by reducing the amount of the per pupil payment under this

23

section by a dollar amount calculated by determining the amount by

24

which the amount necessary to fully fund the requirements of this

25

section exceeds the maximum amount allocated under this section and

26

then dividing that amount by the total statewide number of pupils

27

who met the income eligibility criteria for free breakfast, lunch,

______'15

____

41

1

or milk in the immediately preceding fiscal year, as described in

2

subsection (3).

3

(12) If a district is formed by consolidation after June 1,

4

1995, and if 1 or more of the original districts was not eligible

5

before the consolidation for an additional allowance under this

6

section, the amount of the additional allowance under this section

7

for the consolidated district shall be based on the number of

8

pupils described in subsection (1) enrolled in the consolidated

9

district who reside in the territory of an original district that

10

was eligible before the consolidation for an additional allowance

11

under this section. In addition, if a district is dissolved

12

pursuant to section 12 of the revised school code, MCL 380.12, the

13

intermediate district to which the dissolved school district was

14

constituent shall determine the estimated number of pupils that

15

meet the income eligibility criteria for free breakfast, lunch, or

16

milk, as described under subsection (3), enrolled in each of the

17

other districts within the intermediate district and provide that

18

estimate to the department for the purposes of distributing funds

19

under this section within 60 days after the school district is

20

declared dissolved.

21

(13) As used in this section, "at-risk pupil" means a pupil

22

for whom the district has documentation that the pupil meets any of

23

the following criteria:

24

(a) Is a victim of child abuse or neglect.

25

(b) Is a pregnant teenager or teenage parent.

26

(c) Has a family history of school failure, incarceration, or

27

substance abuse.

______'15

____

42

1

(d) For pupils for whom the results of the Michigan merit

2

examination have been received, is a pupil who does not meet the

3

other criteria under this subsection but who did not achieve

4

proficiency on the reading, writing, mathematics, science, or

5

social studies components of the most recent Michigan merit

6

examination for which results for the pupil have been received.

7

(e) For pupils in grades K-3, is a pupil who is at risk of not

8

meeting the district's core academic curricular objectives in

9

English language arts or mathematics.

10

(f) The pupil is enrolled in a priority or priority-successor

11

school, as defined in the elementary and secondary education act of

12

2001 flexibility waiver approved by the United States department of

13

education.

14

(g) The pupil did not achieve a score of at least proficient

15

on 2 or more state-administered assessments for English language

16

arts, mathematics, science, or social studies.

17

(h) For high school pupils in grades not assessed by the

18

state, the pupil did not receive a satisfactory score on 2 or more

19

end-of-course examinations that are aligned with state standards in

20

English language arts, mathematics, science, or social studies. For

21

middle school pupils in grades not assessed by the state, the pupil

22

did not receive a satisfactory score on 2 or more end-of-semester

23

or end-of-trimester examinations that are aligned with state

24

standards in science or social studies. For pupils in the

25

elementary grades in grades and subjects not assessed by the state,

26

the pupil did not receive a satisfactory score or did not have a

27

satisfactory outcome on 2 or more interim assessments in English

28

language arts, mathematics, science, or social studies.

______'15

____

43

1

(i) In the absence of state or local assessment data, the

2

pupil meets at least 2 of the following criteria, as documented in

3

a form and manner approved by the department:

4

(i) The pupil is eligible for free breakfast, lunch, or milk.

5

(ii) The pupil is absent more than 10% of enrolled days or 10

6

school days during the school year.

7

(iii) The pupil is homeless.

8

(iv) The pupil is a migrant.

9

(v) The pupil is an English language learner.

10
11
12

(vi) The pupil is an immigrant who has immigrated within the
immediately preceding 3 years.
(vii) The pupil did not complete high school in 4 years and is

13

still continuing in school as identified in the Michigan cohort

14

graduation and dropout report.

15

(14) Beginning in 2014-2015, if a district, public school

16

academy, or the education achievement system does not demonstrate

17

to the satisfaction of the department that at least 50% of at-risk

18

pupils are reading at grade level by the end of grade 3 as measured

19

by the state assessment and demonstrate to the satisfaction of the

20

department improvement over 3 consecutive years in the percentage

21

of at-risk pupils that are career- and college-ready as measured by

22

the pupil's score on each of the individual subject areas on the

23

college entrance examination portion of the Michigan merit

24

examination under section 1279g(2)(a) of the revised school code,

25

MCL 380.1279g, the district, public school academy, or education

26

achievement system shall ensure all of the following:

27
28

(a) The district, public school academy, or the education
achievement system shall determine the proportion of total at-risk

______'15

____

44

1

pupils that represents the number of pupils in grade 3 that are not

2

reading at grade level by the end of grade 3, and the district,

3

public school academy, or the education achievement system shall

4

expend that same proportion multiplied by 1/2 of its total at-risk

5

funds under this section on tutoring and other methods of improving

6

grade 3 reading levels.

7

(b) The district, public school academy, or the education

8

achievement system shall determine the proportion of total at-risk

9

pupils that represent the number of pupils in grade 11 that are not

10

career- and college-ready as measured by the student's score on

11

each of the individual subject areas on the college entrance

12

examination portion of the Michigan merit examination under section

13

1279g(2)(a) of the revised school code, MCL 380.1279g, and the

14

district, public school academy, or the education achievement

15

system shall expend that same proportion multiplied by 1/2 of its

16

total at-risk funds under this section on tutoring and other

17

activities to improve scores on the college entrance examination

18

portion of the Michigan merit examination.

19

(15) As used in subsection (14), "total at risk pupils" means

20

the sum of the number of pupils in grade 3 that are not reading at

21

grade level by the end of third grade and the number of pupils in

22

grade 11 that are not career- and college-ready as measured by the

23

student's score on each of the individual subject areas on the

24

college entrance examination portion of the Michigan merit

25

examination under section 1279g(2)(a) of the revised school code,

26

MCL 380.1279g.

27
28

(16) A district or public school academy that receives funds
under this section or the education achievement system may use

______'15

____

45

1

funds received under this section to provide an anti-bullying or

2

crisis intervention program.

3

SEC. 82. FOR EACH SCHOOL EMPOWERMENT ZONE ESTABLISHED IN

4

FISCAL YEAR 2015-2016, $250,000.00 IS APPROPRIATED TO THE SCHOOL

5

EMPOWERMENT ZONE FOR ITS INITIAL ADMINISTRATIVE COSTS.

LAN01\379811.3

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